Question : Fixed Assets (Gross) RS. 10,00,000; Accumulated Depreciation RS. 5,00,000; Non-Current Investments RS. 50,000; Long-term Loans and Advances RS. 2,00,000; Current Assets RS. 2,50,000; Current Liabilities RS. 10,00,000; Long-term Borrowings RS. 3,25,000; Long-term Provisions RS. 2,75,000. Total Assets to Debt Ratio will be
Option 1: 3:2
Option 2: 5:3
Option 3: 7:5
Option 4: 4:1
Correct Answer: 5:3
Solution : Answer = 5:3 Total assets to debt ratio=$\frac{\text {Total Assets}}{\text {Debt}}$=$\frac{10,00,000}{6,00,000}$=5:3. Total assets= Fixed assets-accumulated dep+ non-current investment=10,00,000-5,00,000+50,000+2,00,000+2,50,000=5,50,000+2,00,000+2,50,000=10,00,000. Debt= Long-term borrowings+ longterm provision= 3,25,000+2,75,000= 6,00,000. Hence, the correct option is 2.
Question : Which of the following statements is correct?
Option 1: Total Assets = Non-Current Assets (Tangible Assets + Intangible Assets + Non-Current Investments + Long Term Loans & Advances) + Current Assets
Option 2: Debt = Long Term Borrowings + Long Term Provisions
Option 3: Examples of Debts are Debentures, Mortgage Loan, Bank Loan, Loans from financial institutions and Public Deposits etc
Option 4: All of the above
Question : Which of the following statements is false?
Option 1: Total Assets = Fixed Assets + Non-current Investments + Current Assets
Option 2: Long-term Borrowings or Debt = Total Borrowing - Short-term Borrowings
Option 3: Total Assets = Shareholders Funds + Long term Borrowings + Short term Borrowings + Other Current liabilities
Option 4: None of the above.
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